Indian Rally Fated to Fade

Despite a strong third quarter for exporters, the market is unlikely to overcome domestic weakness and political challenges right away.

Corporate India is on pace to deliver its best quarterly growth in more than a year. Unfortunately, that's unlikely to translate into a broad stock-market rally because local consumption hasn't improved, and much-needed structural reforms won't occur until next May's elections at the very earliest.

First, the good news. Infosys kicked off India's earnings season on Oct. 11 with better-than-expected...